Half of Evans Cycles stores to be closed in rescue deal

Mike Ashley, Billionaire and founder of Sports Direct, has brought Evans Cycles out of administration – though only 50% of stores are set to remain open. Ashley believes this is the only way to save the business.

Hundreds of jobs are to be lost.

Evans, almost 100 years old, with 62 shops and 1,300 employees – began seeking a rescue deal last month, when PwC were appointed as advisors.

A lack of cash to invest in stores and online, a cold period to begin 2018, mixed with losses, capital expenditure requirements and tightening credit, caused a difficult year for Evans.

Evans is not the first retailer Ashley’s firm has rescued. In August, Sports Direct brought House of Fraser for £90m, as they entered administration.

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As a keen cyclist for 30 years, I see fewer and fewer people going to shops such as Evans cycles to purchase cycle components and complete bikes themselves. Cyclist have simply levitated to buying there goods on the Internet. Companies such as Wiggle, Ribble, Planet-X are out competing high street shops. All three companies mentioned are big cycle warehouses with a great internet presence. Cycle shops have become places to get your cycles serviced when things ware out or break. People go into cycle shops, look at the goods, think that looks nice, or that's the right size, go home and order the same product at a lower price on the Internet. Evans Cycles have a very good internet marketing presence, but the overheads of their street outlet stores must have crushed the companies cash flow.

Phil31/10/2018 06:50

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Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.

The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.